Advantages and disadvantages of family management

Although many family businesses have mediocre management and low technology, they still have strong viability and competitiveness. This is the unique advantage of the family management model, which is concentrated in:

First, most employees are employed for life, and the employees are stable and rarely flow, so the investment in human resources development is low, the training cost of employees is low, and the overall quality of employees can be guaranteed.

Second, employees have strong dependence on enterprises and strong corporate cohesion. Lifetime employment system and seniority wage system make employees reluctant to leave the enterprise. Once they jump to a new enterprise, their wages and benefits should start from scratch. Therefore, linking the interests and fate of employees with enterprises can improve the endurance and risk resistance of enterprises.

Third, the internal interpersonal relationship is harmonious. Family management emphasizes emotional people, touching people with deeds and convincing people with virtue. Managers use less position power, more personal authority, less labor conflicts and less personnel disputes in enterprises, which is not easy to produce fierce labor confrontation, strikes, demonstrations, mass dismissal of workers and other vicious incidents in western enterprises.

Fourth, it has a strong ability to absorb and digest new technologies and new processes, which can effectively prevent the disclosure of enterprise secrets and technical patents, and its internal technological innovation is also highly targeted and practical.

Fifth, managers and employees in family-owned enterprises have the idea of "repaying kindness with kindness" emotionally. Employees are grateful to managers as their parents. Employees who are not related by blood also have the goodwill to know each other, appreciate their loved ones and reuse them. They will redouble their efforts to repay. If someone ignores or violates such ethical values and codes of conduct, it will arouse public criticism and sometimes it is difficult to gain a foothold in society.

disadvantaged

Family management pays too much attention to human feelings and ignores system construction and management. This management mode makes the interpersonal relationship within the enterprise harmonious and brings harmonious benefits to the enterprise. However, an enterprise is not a family, but a social and economic organization. There are some differences and conflicts between the personal goals and interests of its members and those of the enterprise, especially between employees who are not related by blood, and between employees and managers and relatives or cronies. There must be an objective and fair standard, and the behavior of all members can be restrained by a unified system and discipline, so as to form an objective and fair management mechanism and a good organizational order.

The role of family business managers is very prominent. Their moral conduct is correct and their style is rigorous, which has played an exemplary role in contributing to public welfare undertakings. Their professional quality also needs a skill. Many of them are compound talents, not only experts in a certain technical field, but also savvy businessmen and public relations experts. Many subordinates are limited to play their role because of their talents, and the growth of talents is restrained, forming absolute personal authority. Therefore, this kind of enterprises often have the phenomenon of "success is also Xiao He, failure is also Xiao He". At the same time, when this person is absent or abdicates, there will be a shortage of talents and a power vacuum in the organization, which will cause the enterprise to be in an unorganized state for a period of time.

The phenomenon of cronyism in family management is serious. When they deal with interpersonal relationships, they apply it according to their closeness rather than seniority, so there is a difference between "one's own" and "outsiders" in the organization, resulting in a familism atmosphere of "brothers fighting, father and son fighting". In order to survive, outsiders often cling to the trend and form factions of "your group" and "my group". Sometimes, in order to protect the interests of "outsiders", they will unite against managers or "own people", causing internal disputes in enterprises. Therefore, family management is either unity and harmony, or internal division and factional disputes.